For some investors, Cardano recently dropping below $1 may seem disastrous. However, ADA bulls do not seem worried about the slight drop, as on-chain data suggests they may be preparing for another round of sustained increases.
Below is an in-depth analysis of the future trends of altcoins.
Cardano investors maintain a bullish belief
As of the time of writing, Cardano's price is $0.98, having previously risen to $1.15. This slight drop may be related to yesterday's market decline, when Bitcoin (BTC) fell below $95,000.
However, Coinglass data shows that as of the time of writing, the ADA spot inflow/outflow is -$40 million, down from -$63 million on Monday, November 25. This indicates that Cardano bulls have withdrawn about $100 million from exchanges in just two days.
Generally, when holders withdraw tokens from exchanges, it indicates they do not intend to sell, which can create upward price pressure. Conversely, an increase in inflow indicates holders are willing to sell, which may lead to a price drop.
Cardano spot inflow/outflow.
Therefore, if the outflow continues to increase, the price of Cardano may rebound in the short term. Another indicator predicting this trend is the average dollar investment age (MDIA).
MDIA is the average age of all tokens on the blockchain, weighted by average purchase price. When it increases, it means that most tokens remain stagnant. Therefore, the price is unlikely to fluctuate significantly.
However, for Cardano, the 90-day MDIA has significantly decreased, indicating an increase in trading activity of previously inactive tokens. If this continues, as long as buying pressure increases, ADA may rise relatively easily.
Cardano average dollar investment age.
ADA price prediction: the upward trend will continue
The 4-hour ADA chart shows a bull flag pattern forming, which is a bullish pattern consisting of two rebounds separated by a brief consolidation period.
This pattern starts with a sharp price increase, known as a flagpole pattern, driven by strong buying. Then the price retraces, forming a flag—a rectangle with parallel trendlines. A bull flag usually indicates that after consolidation, once the pattern breaks, the price is likely to resume its upward trend.
Cardano 4-hour analysis.
Considering the current outlook, Cardano bulls may push the price above $1.15. If this happens, ADA could rebound to the $2 mark. On the other hand, if selling pressure increases, the price could drop to $0.85.
